Costs up, profits down, sales 'neutralise': IIM-A surveys of top business executives

Cost perceptions

By A Representative
The Indian Institute of Management-Ahmedabad's (IIM-A's) latest Business Inflation Expectations Survey (BIES), which seeks to provide ways to examine the amount of slack in the economy by polling a panel of business leaders, has said that the cost perceptions data indicates "hardening of cost pressures".
It said, in September, "Over 59% of the firms perceive significant (over 6%) cost increase, as against 55% reported in the earlier round", which took place in August, adding, "Around 35% of the firms perceive that costs have increased very significantly (over 10%) – further up from the responses received earlier in August 2021. For the first time, over 1/3rd of the firms reported more than 10% cost increase."
At the same time, it said, "Around 48% of the firms in the sample in September 2021 report ‘much less than normal’ profit – up from 44% reported in August 2021", adding, "About 15% of the firms now report that profit expectations of ‘about normal’ – down from 17% reported in August 2021."

Profit perceptions

However, ironically, BIES said, "Sales expectations have further improved. Around 33% of the firms in September 2021 reported that sales are ‘much less than normal’, as compared to 36% reported in August 2021", noting that "the instance of only 1/3rd of the firms expecting ‘much less than normal’ was reported last in May 2019."
Taking an overview, it said, "Overall improvement in sales is overshadowed by the cost increase. As a result, profit expectations have remained subdued", pointing out, "One year ahead business inflation expectations in August 2021, as estimated from the mean of individual probability distribution of unit cost increase, have increased sharply by 53 basis points to 5.75% from 5.22% reported in September 2021."
It added, "The uncertainty of business inflation expectations in September 2021, as captured by the square root of the average variance of the individual probability distribution of unit cost increase, has also increased sharply to 2.2% from around 1.9% reported during July-August 2021."

To Sonam Wangchuk: 'Will undertake 70 hour solidarity fast in Gujarat'

By Martin Macwan * Dear Colleague Sonam Wangchuk, I have never met you personally. I wrote a short article at the time of your arrest. Your work correctly introduces you. There is truth in your words. You have embarked on a fast, following the footsteps of Gandhiji. Your intention is to make people think. Your demand is reasonable; I believe that the resignation of a single education minister will not improve the state of education in India. However, the question you have raised is extremely important for the future generation of the marginalized. Education is the key to power, development, and progress, which empowers a citizen.

Gujarat police SOP sparks questions over communal profiling

By Shabnam Hashmi* The Gujarat government must be held accountable for what appears to be a deeply disturbing instance of state-sponsored communal profiling. Ahmedabad resident Sahal Qureshi recently shared with me an official document , which I translated with the help of AI before forwarding it to several media organisations and political leaders.

US civil society coalition slams Hudson Institute for hosting RSS leaders

By A Representative The Hudson Institute ’s “New India Conference,” held on April 23, featured senior figures from India’s ruling political ecosystem, including RSS General Secretary Dattatreya Hosabale and BJP foreign affairs head Vijay Chauthaiwale . The event also included U.S. officials and former diplomats such as Kurt Campbell, Kenneth Juster, and Nisha Biswal, alongside India’s Ambassador to the U.S., Vinay Kwatra.

Counterview

Search This Blog